Mobiles extra SMS services controllable to restrict high bills

Tuesday March 9, 2010

The Australian Communications and Media Authority have announced its decision to allow mobiles users to specifically request a barring option against high-cost premium SMS services. This is being viewed as a strong benefit for parents whose children have their own mobiles but may access costly ringtones or games through their mobile phones.

According to consumer complaints, there has been a rise in the number of mobiles users that have been negatively affected by high charges and ongoing fees from ringtones and games options, fees that are usually only revealed in the fine print and are hard to opt out of.

The move has been supported by the Australian Competition and Consumer Commission (ACCC) and consumer groups Choice and the Australian Communications Consumer Action Network, although the ACCC suggested a hardline recommendation for an automatic bar.

The ACCC recommendation requested that mobiles users would actually have to request the bar be lifted, as opposed to having the bar installed, yet the ACMA decided to side with the mobile phone industry which suggested having the bar as an option to be downloaded so as not to make it difficult for all consumers who wanted free access on their mobiles.

Chris Chapman, chairman of the communications authority, stated that the ACMA believes that the mobile industry should be progressing towards enabling consumers to request quick and easy barring via SMS, making it user-friendly.

''This will be a great option for parents who want to make sure their kids don't sign up for something without understanding the charges. And people trying to manage their phone budget can stop premium charges by barring these services from their phone.''

There is also progress towards specific rules to limit the contact between mobile phone companies and rogue operators, which should also benefit the consumer.

However, the ACCC has warned that many consumers may not be aware of the "opt-in" method and consider it a second choice to the "opt-out" method, as they believe that many consumers will not even know how to "opt-in" unless their mobile provider instructs them how to do so.

The changes will take effect from July 1st 2010.

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